Same Day Funding to Fulfill Large Orders
The clothing and textile industry constantly deals with importers and exporters for clothing as well as textiles. The credit extended for this can sometimes take up to 60 days for payment, which can considerably reduce the cash flow available for growth. Clothing and textile factoring can greatly lessen or eliminate this gap in cash flow.
How Can Clothing and Textile Factoring Help?
Factor Finders is a company that offers several services to businesses including connecting them to the right factor. This means the business’s invoices can be used to raise cash without debt appearing on their balance sheet. Factor Finders offers financial solutions for clothing and textile factoring that specifically suits importing and exporting.
Factoring invoices can generate cash within a few days. This allows you to plan for employer deduction remittance, payroll and purchase supplies, which allows you to stay ahead of the competition while better planning your daily and future operations.
How Does Factoring Textile Invoices Work?
Factoring is a way for a business to increase their liquidity without going into debt. Clothing and textile companies sell their accounts receivable to a factor who accesses the ability of the account debtor to pay the invoice. If the debtor has a good credit rating, the factor will pay the business a percentage of the value of the invoice owed. This could be 85 percent within 24 hours.
When the customer pays the invoice, the factoring company will give you the rest of the value of the invoice minus the factoring fee. There is a non-recourse factoring option that will pay the advance percentage as well as the reserve release, even if the customer does not pay their bill. This is why the debtor’s credit rating is important.
Factor Finders offers an account management system that will check their client’s status 24/7 and send monthly statements. Clothing and textile factoring offers the opportunity for designers to focus on the creative side of their business and have the cash-flow they need without worrying about the back office.
Accounts Receivable Factoring is Flexible and Debt Free
Accounts receivable factoring has proven to be the best way to get quick cash without going into debt. Any company that offers goods or services on credit is eligible for factoring. You can select which invoices you factor and keep complete control of this line of credit. You will not need a credit check or need to wait for 30 to 90 days to receive the cash as with a lending institution. If you own a clothing and textile company, you should call Factor Finders today to increase profits and take your business to the next level.